Presentation to Soy 20/20

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ONTARIO CHEMISTRY VALUE CHAIN INITIATIVE

• Presentation to Soy 20/20
• General Meeting
• September 22nd 2004

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Overview

• Who we are
• Why OCVCI was created
• OCVCI Vision
• Participants
• How we are fulfilling the Vision
• How you can help

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Who We Are

• Companies, associations, and individuals
  representing the value chain Financing, RD and
  manufacturing to products and services within the
  chemical and biotechnology fields

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What we call ourselves

• Ontario Chemistry Value Chain Initiative

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Who represents us publicly

• We are represented by two Co-Chairs (Steve Bolt
  and Bernard West) and committee members
• All members of the committee are actively
  involved in communicating the Initiative
• We are partners with the Government of Ontario
  and the Government of Canada

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Why we exist

• To advance the tremendous potential that exists
  in the synergistic relationships within the
  chemistry value chain
• To address issues and remove impediments to our
  growth and prosperity in Ontario
• To highlight the specific ways in which we can
  make the sector grow in the future

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Why we exist

• The petrochemical and mineral/hydro based
  industry is shrinking.
• The growing market and lower cost and abundant
  feed stack and energy is out side North America,
  not just Canada.
• Large companies have rationalized and the mind of
  management is no longer in Canada.

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The OCVCI was established to accelerate
innovation.

• Vision
• Make Ontario a global leader in innovative,
  environmentally sustainable, chemical products,
  technologies and processes.
• To increase competitiveness by
• working together to identify common issues
• to develop synergies across industries
• to bridge the gap between bio and synthetic
  chemistry
• to improve economic and environmental
  sustainability

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We need to build value chain delivery systems.

• Participants
• Primary chemical manufacturers
• Venture capital
• Bio-based industry
• Research and educational institutes
• Provincial and federal governments

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Process

• Build non-traditional industrial alliances
• Pull innovative technologies out of research labs
  and into reality
• Improve alignment of research with market
  opportunities
• Identify constraints
• collaborate across industry to reduce constraints
  to the commercialization of innovative technology
• proactively identify and solve problems

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Values

• Develop innovative technologies in ways that
  sustain the environment
• Be inclusive
• diversity of industry
• diversity of company size
• Nurture and promote corporate responsibility

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OCVCI Activities to Date
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Establishment of effective ties across industry
and research

• Forming partnerships with bio-based industries
  and universities
• Developing a self-sustaining business model for
  sustaining University research, and accelerating
  commercialization.

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Created a Sustainability Model
Tomorrow
Meeting societys needs for new, superior and
sustainable materials
New clean technologies for chemical production
Internal
External
Maximizing efficiencies and reducing/eliminating
emissions/risks
Transparency/Accountability through Responsible
Care type ethics
Today
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Human resource development efforts.

• Formed a human resources champion committee.
• Identification of training needs
• Developing labour force strategy
• 10 years out
• Engage participation of industry, colleges and
  government.
• Completed Phase 1 of GAP analysis.

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Efforts to enhance competitiveness

• Development of an inventory of pilot plant
  capability
• Determined that there is not a need for
  additional resources for physical infrastructure.
• Defined and communicated regulatory priorities to
  enhance business growth and retention.
• OCVCI presented issues to committee of Deputy
  Ministers.

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Priorities to Enhance Business Growth1.
Improved commercialization of innovative
products

• Establish a cross-ministry/industry task force to
  remove barriers to commercialization.
• One stop, objective based standards and
  regulatory approvals
• Development and support of a testing
  infrastructure for innovative products throughout
  the value chain
• Develop ETIC-like, self-sustaining, innovation
  delivery channels
• Support improvements in environmental
  sustainability of products through government
  procurement and mandates.
• Champion Ontario within federal initiatives

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Model for stimulating commercialization of
innovation.Market pull interacting with
innovators
New Model
Old Model
Parallel Like soccer
Sequential Like American Football
A Research
A Research Marketing manufacturing
B Development
B Development Commercialization
Research
C Commercialization
D Full Business
C Business manufacturing development
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Model for stimulating commercialization of
innovation.
Private capital
Opportunity
Private capital
Opportunity
Broker
Seed Fund
Opportunity
Opportunity
Broker
Opportunity
Opportunity
Opportunity
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How do companies work with this strategy?
Company provides matching investment
Opportunity
Commercial Projects
Opportunities identified either externally or
internally
Opportunities pooled
Opportunity
Opportunity
Opportunity
Venture Capital
Venture capital
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Priorities to Enhance Business Growth2. Improved
industry competitiveness

• Establish a business development working group to
  work with the OCVCI to build sustainable
  platforms and remove barriers to competitiveness
  throughout the value chain.
• Raw material supply and competitiveness
• Energy supply, reliability and competitiveness
• Tax competitiveness
• User fees
• Access to capital

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Improved industry competitiveness
Status

• OCVCI will work with the inter-ministry group
  that is developing the provincial bioproducts
  strategy regarding innovation and competitiveness
  issues.
• Approach has the endorsement of the Deputy
  Minister, Ministry of Economic Development and
  Trade

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Priorities to Enhance Business Growth3.
Recognition and support of our vision

• Clear, communicated support of the Ontario
  chemical industry,
• Continuing to support the OCVCI process working
  with appropriate government department
  involvement
• Work with industry to brand Ontario as a place to
  deliver innovative technologies.

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Recognition and support of our vision
Status

• OCVCI
• Has support of the Ministry of Economic
  Development and Trade, the Ministry of Training,
  Colleges and Universities as well as Industry
  Canada.
• Has presented to a committee of Deputy Ministers.
• Has received citation in the Toronto Star and
  Chemical Week.

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How you can help
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Soy 20/20

• Attend OCVCI meetings
• Contribute to development of strategy and
  innovation model
• Participate in OCVCI committees
• Respond to requests for information and
  participate in surveys
• Communicate with others about OCVCI
• Collaborate on opportunities